Teksts
|
Financial reports of the 1st Quarter 2013 of Joint-Stock Company
Reverta continue to show positive results – the Company has met its
target and has made a EUR 7.1m interest payment on State Aid to the
State Treasury. Overall, EUR 16.5m, was recovered during the
reporting period from development and sales of distressed assets,
and another payment of EUR 5.9m was made shortly after the end of
the reporting period.
Thus, there is reason to believe that the approved action strategy
and business management decisions taken have proved to be suitable
for achieving the best possible performance in the given
circumstances. As before, mostly the sums available to repay
to the State Treasury were recovered because of loan restructuring
and sales of separate claim rights activities. At the end of
the reporting period there were 2386 credit cases under supervision
of the Company filed for enforcement activities to be
launched.
While enjoying accomplishments, Christopher Gwilliam also points
out to the fact that it becomes more and more difficult to recover
State Aid: „With every restructured and recovered distressed
loan, proportion of particularly difficult-to-recover loans
requiring considerable resources, including those of people and
time, is increasing. Besides, too lengthy and, therefore,
often inefficient litigations lead to impairment of the value of
Company’s loan portfolio, and this means less amounts of money
recovered.”
The amount of money collected from sales of real estate properties
has significantly increased since the end of the last Quarter 2012.
Third parties have bid for 120 real estate properties for the total
amount of EUR 3.3m at auctions where properties pledged in favour
of the Company or properties encumbered with collection rights were
sold. Overall, the Company has participated in 362 auctions
of real estate properties during the reporting period. At the
end of it, there were approximately 370 real estates with the total
market value of EUR 30m put on sale after carrying out all
necessary maintenance works.
Regular provisions for unsecured debts and the excess of interest
expense over interest income are the main items in the loss section
of the Company’s financial report. Though, it should be
reminded that these items do not affect the actual performance of
the Company or its cash flow, and the purpose of the Company (which
is recovery of distressed loans once granted by Parex banka) and
resulting operation model cannot be measured by the standards
applied to companies of other spheres, including credit
institutions.
The distressed assets portfolio of JSC Reverta consists of debts in
Baltic and the CIS countries, and approximately 60% of all debts
are to be recovered in Latvia.
To learn more about JSC Reverta, please visit our company web page
www.reverta.lv.
For additional information contact:
Marita Ozoliņa
Head of Communication and Marketing Department
Tel. 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
|